Why is Pi token down today?
Slowing mining and a security incident
On Tuesday, the Pi cryptocurrency continued its decline, falling 7% to $0.55 and worsening its weekly performance to -15%.
According to Crypto.news, earlier this week Pi Network announced the launch of separate domain auctions in a new app to allow users additional earning opportunities.
However, the news failed to energize a broad audience, who remain more interested in Pi’s mobile “mining” feature that rewards users for in-app activity. These rewards continue to decrease, with some users reporting that their monthly earnings amount to just a few dollars.
Pi Price Dynamics for 7 Days. Source: CoinMarketCap
Since declining mining speed is a core feature of the project, Pi Network is likely to keep losing both users and value — unless the team motivates the community to become long-term holders instead of seeking quick cash-outs.
Slowing mining and a security incident
Another contributing factor to the token's price drop was a security breach at Pi Chain Mall, a third-party e-commerce platform that uses Pi tokens for purchases.
Following a password leak, users were urged to immediately change their credentials. Although Pi Chain Mall is officially independent from Pi Network, the incident affected the entire ecosystem and triggered significant sell-offs.
As we wrote, Pi Network unveils migration roadmap
